With the market still red-hot, buying a home has become a more pressing concern
With the property market still red-hot, buying a home has become a more pressing concern for many Australians than getting married, according to a study by financial comparison site Mozo.
The study found that 23% of Australian couples who had purchased a property together did so before getting married.
“For some couples, it’s very much a case of mortgage at first sight, as their love affair with property takes precedence over a public commitment around their relationship,” Mozo spokesperson Tom Godfrey said.
Prospective home buyers’ urgency to get on the property ladder has only increased in recent years, with record-low mortgage rates sending demand skyrocketing, Mozo reported. Home prices spiked 22.2% over 2021, leaving the median Australian home more than $126,000 more expensive than it was in 2020, according to data from CoreLogic.
Economists at the major banks expect prices to continue to rise this year before dropping between 4% and 8% in 2023. The fear of being priced out of the market has led many Australians to accelerate their home-buying plans, Mozo said.
The study found that 11% of couples begin looking to buy a home together within the first year of their relationship. However, 52% will wait between two and five years before buying a home together.
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Mozo also found that many couples were willing to use part of their wedding budget to go towards a home, with 34% of respondents spending 50% less on their wedding after purchasing property.
“Although their weddings and commitment ceremonies might not be as extravagant, couples who choose to invest in property are on the path to building equity in their family home, which could pay off in the long run,” Godfrey said.
